Duty on rice import likely

The food ministry has proposed imposing import duty to check large-scale import of rice by the private sector as the government wants to save local producers from an impending price slump.
Officials said the ministry's recommendation came following a query by the revenue board as per instructions of the finance minister to look into the matter.
The International Business Forum of Bangladesh (IBFB) earlier had proposed that the government levy tax on rice import.
In a recent letter, the food ministry said, "Import of rice should be discouraged before the season of procurement of boro rice in order to ensure fair price to the farmers."  
Government purchase of the dry-season rice starts on May 1, 2015, as price support to the growers.  
Since 1 July 2014 until March 2015, rice imports in the private sector had stood at 1.8 million tonnes.
The import of rice from India marked a substantial increase in the current fiscal year, the food ministry pointed out.
It said the government will procure some 1.1 million tonnes of boro rice in the current harvesting season.
Price of the paddy usually falls following a market glut after the new harvest. So, the government purchases rice to rein in price fall and ensure fair prices to growers.
The ministry urges the National Board of Revenue (NBR) to take immediate steps to check import of rice "for the sake of local growers".
doulot_akter@yahoo.com